Matrix Composites & Engineering wins subsea buoyancy equipment contract from Subsea 7

Matrix Composites & Engineering Ltd (ASX: MCE), a key player in the engineering sector, has announced a significant A$30 million contract win. The company will supply subsea buoyancy equipment for a Subsea Oil & Gas Riser System as part of an international offshore project. This project, awarded by Subsea 7, further cements Matrix’s position in the subsea oil and gas industry.

Continuation of Successful Collaboration with Subsea 7

This contract follows a successful partnership with Subsea 7 on a previous project valued at approximately A$18 million, which was completed in the first half of FY23. The new contract represents a continuation of this productive collaboration, demonstrating Matrix’s reliability and expertise in the field.

Surge in SURF Buoyancy Market Contracts

Matrix’s latest contract win is part of a series of successes in the Subsea, Umbilicals, Risers, and Flowlines (SURF) buoyancy market. Over the past 18 months, the company has secured contracts totaling over A$90 million, showcasing its growing dominance in this niche market.

Advanced Production Facility in Henderson Key to Success

All equipment for the new project will be produced at Matrix’s state-of-the-art composites production facility in Henderson, Western Australia. This facility is at the heart of Matrix’s operations, enabling the company to deliver high-quality products for complex subsea projects. The production is scheduled to start in the June 2024 quarter and is expected to be completed by December 2024, with the majority of revenue recognition slated for FY25.

Significant Growth in Subsea Revenue Anticipated

Matrix’s secured revenue for FY24 from subsea work is projected to more than double the FY23 subsea revenue of around A$36 million. This growth is indicative of the strengthening market conditions in the subsea sector. In addition to its subsea ventures, Matrix anticipates an overall FY24 revenue exceeding A$80 million, considering the expected recurring revenue from its Corrosion Technologies and Advanced Materials businesses.

Matrix CEO Expresses Confidence in Growth Trajectory

Matrix CEO Aaron Begley emphasized the company’s strong growth momentum and its active pursuit of international subsea opportunities. He highlighted the company’s robust manufacturing capabilities and diverse portfolio, including work in renewable energy and resources sectors, as key factors driving its confident growth trajectory.